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A45/100FDD 2024

The Dog Wizard — Litigation & Risk

Personal Services - Pet Care · FDD Items 3, 4 & 5

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
45 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
8
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$1.2M
Avg loan size
$146K
Participating lenders
5

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
Ohio
State whose law governs disputes — relevant if you're not based there

What drove the 45/100 rating

Risk Score Breakdown

  1. 01HIGHRecent litigation (2023) involving breach of contract and wrongful termination claims with a franchisee — signals potential franchisor-franchisee relationship issues and possible operational or contractual disputes
  2. 02HIGHNo Item 19 financial performance representations (Going Concern: False) — unable to independently verify claimed $262,139 average revenue and $39,116 net income figures
  3. 03MINORUnit growth of 88.6% YoY appears strong but absolute unit count is only 69 — small base makes growth percentage volatile and may not indicate system stability
  4. 04MED8% royalty on weekly gross revenues is high relative to net income of ~$39k annually (~15% net margin) — leaves limited cushion for franchisee profitability during downturns
  5. 05MINORHigh initial investment ($115,700–$194,350) relative to claimed net income ($39,116/year) produces 3+ year payback period with execution risk

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.